According to the Kinked Demand Curve Model, an Oligopolist May

question 227

Multiple Choice

According to the kinked demand curve model, an oligopolist may face

• A)more elastic demand than a monopolistic competitor.
• B)less elastic demand than a monopolistic competitor.
• C)more elastic demand if she raises her price than if she lowers her price.
• D)less elastic demand if she raises her price than if she lowers her price.

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Definitions:

Eye Shields

Protective devices worn over the eyes to prevent injury or shield from bright light or harmful particles.

Phenylalanine Hydroxylase

An enzyme that converts the amino acid phenylalanine into tyrosine, its deficiency can lead to phenylketonuria.

PKU

Phenylketonuria, a genetic disorder characterized by the inability to break down the amino acid phenylalanine, leading to harmful levels in the body unless managed with a special diet.

Low-Phenylalanine

Pertaining to a diet low in phenylalanine, an essential amino acid, often prescribed for individuals with Phenylketonuria (PKU) to prevent brain damage.